Managers boost bets against euro

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Managers are increasing their bets against the euro and forecasting falls of up to 20% in the single currency, even as the ECB continues to tighten monetary policy.

Dale Thomas, manager of the £386m Absolute Insight Currency fund, said the euro is the focus of the fund’s largest short position, accounting for between 10% and 30% of NAV. Thomas is short the euro versus sterling and has initiated a short position in the single currency versus the Swedish krona. “The eurozone economy is slowing rapidly at the same time that other economies – particularly in the US – are going to outperform”, he said. “The periphery slowing will continue to weigh on the euro.” The ECB hiked rates for the second time this year on 7 July, from 1.25% to 1.5%, and pre...

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